Section 929Y – Study on Extraterritorial Private Rights of Action

Section 929Y of the Dodd-Frank Wall Street Reform And Consumer Protection Act was not codified. It reads as follows:

SEC. 929Y. STUDY ON EXTRATERRITORIAL PRIVATE RIGHTS OF ACTION.

(a) <<NOTE: Public comment.>> In General.--The Securities and Exchange Commission of the United States shall solicit public comment and thereafter conduct a study to determine the extent to which private rights of action under the antifraud provisions of the Securities and Exchange Act of 1934 (15 U.S.C. 78u-4) should be extended to cover--

(1) conduct within the United States that constitutes a significant step in the furtherance of the violation, even if the securities transaction occurs outside the United States and involves only foreign investors; and
(2) conduct occurring outside the United States that has a foreseeable substantial effect within the United States.

(b) Contents.--The study shall consider and analyze, among other things--

(1) the scope of such a private right of action, including whether it should extend to all private actors or whether it should be more limited to extend just to institutional investors or otherwise;
(2) what implications such a private right of action would have on international comity;
(3) the economic costs and benefits of extending a private right of action for transnational securities frauds; and
(4) whether a narrower extraterritorial standard should be adopted.

(c) Report.--A report of the study shall be submitted and recommendations made to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the
House not later than 18 months after the date of enactment of this Act.